Apple's Supply Chain Pipeline Raises Concerns Over Slower Growth

Apple's supply chain issues are causing concerns among investors as the company faces slower growth in the September quarter. The main culprit behind this slowdown is the shortage of advanced-node manufacturing capacity for system-on-chip (SoC) production, which will impact iPhone, Mac, and iPad production.

The company's inventory and vendor non-trade receivables have increased by 53% year-over-year to $38.6 billion, indicating a significant supply chain buildup rather than a finished goods backlog.

Investors are now wondering whether this pipeline will convert into revenue once chip supply improves or if it signals deeper demand or working capital issues for the company.

The current stock price of around 32 times forward earnings makes Apple an attractive investment, but the analyst advises investors to hold off until working capital releases and stronger product revenue confirm that supply is the core problem rather than demand.